#1
Which organization facilitates negotiations and agreements between member countries on international trade policies?
World Health Organization (WHO)
International Monetary Fund (IMF)
World Trade Organization (WTO)
United Nations Educational, Scientific and Cultural Organization (UNESCO)
#2
Which trade policy refers to the limitation on the quantity of a specific good that can be imported or exported during a particular time period?
Embargo
Tariff
Quota
Dumping
#3
Which term describes a situation where a country exports more goods and services than it imports?
Trade deficit
Trade surplus
Balance of payments
Current account
#4
What is the term used to describe an agreement between two or more countries to eliminate trade barriers among themselves while maintaining individual trade policies with non-member countries?
Customs union
Free trade agreement
Common market
Economic union
#5
Which of the following is NOT a motive for a government to impose trade barriers?
To protect domestic industries
To promote international trade
To safeguard national security
To generate revenue through tariffs
#6
What is the main purpose of tariffs in international trade?
To encourage imports
To decrease government revenue
To restrict imports
To promote free trade
#7
Which of the following trade policies aims to protect domestic industries from foreign competition by imposing taxes on imports?
Quotas
Embargoes
Subsidies
Tariffs
#8
What does NAFTA stand for in the context of international trade?
North Atlantic Free Trade Agreement
National Association of Free Trade Alliances
North American Free Trade Agreement
Nordic-American Free Trade Accord
#9
Which of the following is an example of a non-tariff barrier to trade?
Import quotas
Customs duties
Export subsidies
Excise taxes
#10
What is the most common currency used in international trade transactions?
Euro
US dollar
British pound
Japanese yen
#11
What is the primary objective of trade liberalization?
To decrease economic growth
To increase trade barriers
To promote international trade
To reduce consumer choices
#12
What is Dumping in the context of international trade?
Exporting goods at a price lower than the production cost
Exchanging goods without paying tariffs
Promoting fair competition among countries
Reducing subsidies on exported products
#13
What is the purpose of a free trade agreement (FTA)?
To increase protectionism
To restrict international trade
To promote economic integration by reducing trade barriers
To promote dumping practices
#14
Which trade theory suggests that countries should specialize in producing goods for which they have a comparative advantage and then trade with other countries?
Mercantilism
Heckscher-Ohlin model
Comparative advantage theory
Factor proportions theory
#15
What is the primary goal of export subsidies?
To reduce the production of goods
To increase the domestic price of goods
To promote domestic production for export
To restrict international trade